The global glycerol market is expected to grow at a CAGR of above 6% over the forecast period of 2016 to 2024. Glycerol is a natural, sweet-tasting thick colorless liquid considered a base product which has diverse applications. Glycerol is utilized in various industries such as pharmaceuticals, personal care, food & beverages, tobacco, alkyd resins & polyether polyols whereas compounds of glycerol are used to preserve lotions, inks, fruits and lubricants. Personal care and pharmaceutical industry accounts more than one-third share of global glycerol market.

The market has largely evolved owing to booming biodiesel and oleo chemicals manufacturing globally with 60-65% of total glycerol output being developed as a by-product of biodiesel. Enforced directives on the use of bio-fuels and other renewable fuel for transport, by regulatory bodies across the globe further driven the market where bio-diesel manufacturers were supported with tax exemption.

Glycerol, owing to low price initiated market penetration in countries where it was not utilized due high price. Also new uses of glycerol as a raw material for value added chemicals are expected to marginally increase glycerol market.

Abundant availability of chemical in crude form and use of glycerol as a base chemical attracted various industries for wide applications. Glycerol market acts as a major source for biodiesel, fatty alcohol, fatty acids and soap industry. The market experienced growth owing to formation of glycerol by transesterification, a chemical process for chemical formation.

Higher prices for petrochemical derived ingredients led to higher demand for biofuels obtained from glycerol. Also, low cost glycerol is widely used as an essential component for cereal manufacturer and dried fruit processor owing to prevention of moisture loss and enhancement of shelf life of products.

Crude glycerine supply is largely dependent on biodiesel production which is expected to fluctuate owing to increasingly uncertain market for biodiesel and declining prices of petrochemicals is hampering growth as bio-diesel demand has dropped marginally. Unstable government legislations, rebates, sustainability and industry subsidies are expected to affect profitability of the market.

Bioglycerol, a processed compound of glycerol is expected to be an eminent raw material for the 2nd generation bio-refinery for producing biodiesel which contains less impurity than glycerol. Demand for refined glycerine is holding strong while demand for crude glycerine is declining, new applications of crude glycerine are expected to evolve based on large surplus available. Glycerol, an environment friendly chemical, has the capability to replace petroleum products over the forecast period.

The market for glycerine is segmented based upon application, sources and region.

On the basis of application, market is subdivided into personal care, polyether polyol applications and alkyd resins. Alkyd resins dominated the market with 13% market share followed by personal care with 12% in terms of volume. Glycerine is used in paints and surface coatings in alkyd resin industry.

Glycerol is utilized in skin products owing to nutritive value and healing properties. Demand in the market is particularly fuelled by growing demand of healthcare and personal care products owing to improving lifestyle and awareness. Polyether polyols is expected to grow owing to the utilization of sweeteners in food products.

On the basis of sources, market is subdivided into biodiesel, fatty alcohols and fatty acids. Olechemicals, application of glycerol, is expected to capture about 30% market share for fatty acids and 55% share for fatty alcohols for making soaps and detergents.

On the basis of region, Asia Pacific accounted for 40% consumption of refined glycerine of the world. China drove the regional market with the expansion of glycerine-to-epichlorohydrin production including polyether polyol production and pharmaceutical uses. United States recorded double digit growth owing to demand in various vertical such as oral & personal care, pharmaceuticals, and food & beverage industry.

New glycerine applications such as upsurge in glycerine refining, shale gas and increase in biodiesel glycerine are the vital factors having huge impact on the market. Formulation of glycerol from epichlorohydrin and propylene glycol is expected to dominate the overall production in the market. Oleo, an innovative concentric company, introduced ‘PALMERA’ refined glycerine, which is a multi-application glycerol with quality standards confirming to major regions such as US, Europe and Asia Pacific. Procter & gamble, a global supplier of glycerine, is known for its quality adherence to industry standards having supplier network all over the world. Unilever (Malaysia) Holdings Sdn Bhd (Malaysia), Godrej Industries Ltd. (India), Dow Chemical Company (USA) and Cognis Corporation (USA) are leading producers having supplier network all over the globe.